Hotel investment and market outlook
Prospects for the tourism sector remain solid. Hotel occupancy and average daily rate stand near or above the high marks reached before the pandemic. Across the country, occupancy sits at about seventy-two point eight percent, just a touch under the all time high from 2019, while the average nightly rate rose by around sixteen point five percent last year to roughly one hundred forty four point five euros. These figures come from data compiled by SRT and Cushman & Wakefield.
What lies ahead for 2024 is a topic of keen interest. The hospitality team at Cushman & Wakefield in Spain notes that rates are likely to keep rising, albeit at a more modest pace than the surge seen in 2023. On the occupancy front, improvements observed in late 2023 are expected to continue, and hoteliers are broadly forecasting a positive year. Early summer reservations have already begun to accrue, signaling a healthy demand cycle for the season ahead.
Hotel investment breaks records
In 2023, investment in hotels surpassed four billion euros. A substantial share of this volume was driven by three major deals: the acquisition of a thirty five percent stake in HIP by the Singaporean sovereign fund GIC, and two large portfolios purchased by the Abu Dhabi sovereign wealth fund ADIA. Even so, when these mega transactions are set aside, the annual volume aligns with recent industry averages around two billion euros, underscoring a steady underlying activity level.
Forecasting data for 2024 suggests that tracking last year will be challenging. The pool of active investors remains consistent, with institutional funds alongside private players, particularly from Asia and the Middle East, continuing to play a central role. While sizable portfolios need to change hands to reach 2023 figures, the market appears to be in a phase where large disposals can create opportunities for substantial transactions, keeping deal flow robust for the year ahead.